Betting on a sports game? Your winnings are considered taxable income
PHOENIX (AZFamily) — As March Madness comes to a close with Monday’s NCAA Championship game, some viewers might place a bet or two on the game.
While it can be fun, it’s important to remember that your gambling winnings are considered taxable income.
“Technically, the tax code is that you’re supposed to pay taxes on all the gambling money you take in, and you can only deduct the losses up to the amount of the winnings, and only if you itemize,” said Ted Rossman, a senior industry analyst with Bankrate.
Rossman said that even though gamblers are supposed to pay taxes on winnings, “a lot of people have this sort of out-of-sight, out-of-mind feeling about it.”
Rossman also said most bettors don’t end up getting tax forms from betting operators like DraftKings or FanDuel.
“What’s so interesting to me is that enforcement has focused much more on the providers and not on the consumer. States are making a lot of tax revenue from sports betting, but almost all of it is coming from the providers,” Rossman said.
Rossman said you should keep track of your winnings and losses so you know how much “you’re putting in and how much you’re taking out.”
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